Slide 1: Annual Results Presentation
Annual Results Presentation for the financial year ended 30 September 2024 Presenters: Sean Walsh, Chief Executive Officer Graeme Sim, Financial Director
Slide 2: Index
INDEX •1 F30 Business Strategy •2 Group structure, Segments & Customer facing brands •3 Geographical representation & Footprint overview •4 Key operational trends •5 Key indicators for the year •6 Investor dashboard •7 Financial performance •8 Segmental reviews •9 Cash flow performance •10 Capital e
Slide 3: F30 Business Strategy
F30 BUSINESS STRATEGY PURPOSE: The Group is powering growth from farm to fork whilst ensuring our stakeholders are better off because we exist Our business model? Our Values? What gives us the right to win? The Group is a unique, growth • Communicate C A combination of the following focused lifestyl
Slide 4: Group Structure, Segments & Business Branding
GROUP STRUCTURE , SEGMENTS & BUSINESS BRANDING * Unbundling in progress TFC Black ownership = 52.72% 4
Slide 5: Geographic Representation & Footprint Overview
GEOGRAPHIC GEOGRAPHIC REPRESENTATION REPRESENTATION & FOOTPRINT OVERVIEW 26 10 17 7 4 5 20 35 17 128 128 ern Cap 24 ern Cap 14 operating points across the Eastern KAL: 269 Units in 149 Places, SA & Namibia +1 Agrimark Packaging, +1 Fuel DC, +1 Retail TFC: 89 Units in 61 places, SA only fuel si
Slide 6: Key Operational Trends
KEY OPERATIONAL TRENDS Positives! Challenges! • Limited capital expenditure • Revenue down 3%, GP up 1.9% • Interest-bearing debt reduced by R206m • H1 -0.2%, H2 -6.2% • Net interest earned increased by R16.8m • Deflation H2 – fuel alone -15% by Sept!! • Debt to Equity best in 10 years • Limited
Slide 7: Key Operational Trends
KEY OPERATIONAL TRENDS Based on total value of transactions Agri Inputs (being Fertilizer, Chem, Feeds, Horticulture, Health, Mech) trending up Agri Infrastructure (excl above) positive all year round, smaller category, but introduced prof. services Cement still a bit volatile, but improving
Slide 8: Key Indicators for the Year
KEY INDICATORS FOR THE YEAR Revenue (R’000) EBITDA (R’000) Recurring Fuel litre Return on Total dividend headline EPS volumes Invested Capital per share (cents) (cents) (“ROIC”) 21,734,924 859,294 561.58 586.1m litres 12.6% 180,00 -3.0% -4.4% -9.4% Group -6.2% LY: 14.3% LY: 180,00 LFL -3.5% TFC -6.4
Slide 9: Group – Investor Dashboard
GROUP – INVESTOR DASHBOARD Share stats @ Sept. 24 • Price R50.50, +46.4% YOY, • Volume 16.0% shares traded in F24 • NAV R45.28, low price to book Dividends • Consistent 3x cover policy • F24 180 cps, unchanged YOY (PEG debt repayment priority) Shareholding • Public 93% • Non-Public 7% (incl. D
Slide 10: Financial Performance - Income Statement
FINANCIAL PERFORMANCE - INCOME STATEMENT R'000 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Revenue 8,574,668 10,582,588 15,700,499 22,397,058 21,734,924 Gross profit 1,310,893 1,576,250 2,003,410 2,918,347 2,973,537 Gross profit margin 15.3% 14.9% 12.8% 13.0% 13.7% Profit after tax 279,178 332,276 412,9
Slide 11: Financial Performance - Balance Sheet
FINANCIAL PERFORMANCE - BALANCE SHEET R'000 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Total assets 5,273,463 5,812,424 8,338,752 8,289,718 8,214,961 Non-current assets 2,345,689 2,442,661 3,683,198 3,670,253 3,983,058 Current assets 2,927,774 3,369,763 4,655,554 4,619,465 4,231,903 Liabilities and loa
Slide 12: Financial Performance - Recurring Headline Earnings
FINANCIAL PERFORMANCE - RECURRING HEADLINE EARNINGS (‘RHE’) RHE HIGHLIGHTS GP growth outperforming turnover performance Expense management: 4.5% growth vs average inflation 5.1% Interest received -9.6% • Lower average debtors Interest paid -17.4% (excl. IFRS 16) • Lower average debt levels
Slide 13: Financial Performance - RHE & RHEPS Reconciliation
FINANCIAL PERFORMANCE - RHE & RHEPS RECONCILIATION F24 F23 Var Attributable Cents per Attributable Cents per Cents per Total (R'000) (R'000) share Total (R'000) (R'000) share share Earnings 451,097 395,315 562.26 480,002 426,945 607.45 -7.4% Headline Earnings adjustments -500 12,987 Profit on dispos
Slide 14: Financial Performance - ROIC vs WACC vs EVA
FINANCIAL PERFORMANCE - ROIC vs WACC vs EVA F23 ROIC Annualisation benefits of: • TFC properties disposal • PEG acquisition F24 ROIC Subdued trading performance ROIC > WACC = EVA ROIC OUTLOOK Continued focus area F25 expected trading improvement High return opportunities in progress Un
Slide 15: Powering growth from farm to fork
The Group is powering growth from farm to fork, a unique, growth focused lifestyle retailer providing best-in-value solutions
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Slide 17: Segmental Review - Agrimark
SEGMENTAL REVIEW - AGRIMARK F24 REVIEW * Agri inputs -1.0%, inflation 2%, (R'000) 2022 2023 2024 fertilizer -6%, feeds -4.9%, Infrastructure +21%, horticulture Revenue 7,829,295 8,183,113 7,775,413 +18%, Health +12% Gross Profit % 11.7% 10.6% 10.7% New Holland agency sales -12%: Fuel price gains
Slide 18: Segmental Review – Agrimark Outlook
SEGMENTAL REVIEW – AGRIMARK OUTLOOK Agri input market share gains in Kouga +12% and Elgin +32% Fuel volume market share gains EC Farm spend normalization in WC as interest rates lower Positive fruit outlook, improved Port readiness Wheat harvest average Cement uptick 1 new Agrimark Q1
Slide 19: The Fuel Company
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Slide 20: Segmental Review – The Fuel Company
SEGMENTAL REVIEW – THE FUEL COMPANY F24 REVIEW Strategy: debt repayment on track, restarted SS acquisition drive, leveraging convenience by expansion of current offerings and new offerings No sites added in F24 Volumes hit low of -7% to -9% mid year, back to flat end of year, but 13m litres lo
Slide 21: Segmental Review – The Fuel Company Outlook
SEGMENTAL REVIEW – THE FUEL COMPANY OUTLOOK H1 upgrades for F25 • 2 service stations • 6 QSR’s H1 expansions for F25 • 6 QSR’s (add on’s) H1 acquisition pipeline for F25 • 5 service stations (high quality) Optimization and integration of operational teams Less impact from road closures L
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Slide 23: Segmental Review – Agrimark Grain
SEGMENTAL REVIEW – AGRIMARK GRAIN F24 REVIEW & OUTLOOK Strategy: regional player, expanding facilities on demand, high RONA 2023/24 wheat yield = average, and wheat prices lower PBT in line with prior year July 24 severe rainfall presented plant nutrition challenges for crop farmers 2024/2
Slide 24: Agriplas
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Slide 25: Segmental Review - Manufacturing
SEGMENTAL REVIEW – MANUFACTURING F24 REVIEW & OUTLOOK Revenue growth mainly from Agriplas Tego matched prior year sales Overall PBT drop compared to LY 25
Slide 26: Cash Flow Performance
CASH FLOW PERFORMANCE KEY CASHFLOW DRIVERS: Strong cash generation from operating activities High cash contribution Increased net interest received Effective working capital management • Inventory growth < revenue growth • Debtors resilient & healthy • Creditors constant Prudent capital in
Slide 27: Capital Expenditure
CAPITAL EXPENDITURE Total capex: R154.0m (R173.1m LY) Agrimark & TFC = largest allocation • Expansion 55% Agrimark Grain: storage capacity expansion • Replacement 31% Corporate: ERP modernisation, replacement • Alternate energy solutions 13% F25 capex will increase (expansion, • Acquisitio
Slide 28: Trade Debtors
TRADE DEBTORS Enabler to revenue growth Debtors book turns 4.2x per year (4.1x LY) Product and geographic diversity reduces Bad debts written off (% average debtors) risk & improves cash flow • Actual: 0.40% Trade receivables -4.7% • 5 yr. average: 0.42% 16,222 accounts (16,105 LY) • 10
Slide 29: Trade Debtors – Not Within Terms
TRADE DEBTORS – NOT WITHIN TERMS NOT WITHIN TERMS (“NWT”) F24 H1 higher, largely citrus and table grapes F24 H2 normalization F24 Year end down 0.3% of debtors Citrus NWT at year end (small number, securities in place, extended collection period) SUMMARY Book remains healthy & resilient
Slide 30: Trade Debtors – By Product Group
TRADE DEBTORS – BY PRODUCT GROUP SUMMARY Good spread across wide product range reduces risk Product diversity reduces cashflow peaks & troughs Similar YOY trends Wheat the only dryland crop Table grape peak aligned with harvest (mainly packaging materials) Growth opportunities 30
Slide 31: Trade Debtors – Credit Sales by River System
TRADE DEBTORS – CREDIT SALES BY RIVER SYSTEM SUMMARY Good spread across wide geographic area reduces risk Water intensive farming focused Managed by decentralized credit teams with centralized credit vetting H2 slowdown vs F22 & F23 Growth opportunities 31
Slide 32: Trade Debtors – Tenure & Risk Rating
TRADE DEBTORS – TENURE & RISK RATING SUMMARY 53.0% longer than 10 years 78.1% longer than 5 years 5.1% less than 2 years Doing more business with well established customers, long track record with KAL RISK RATING 60.3% very low / low 32.0% average 7.0% high 0.7% very high Stringent
Slide 33: Conclusion
CONCLUSION F24: a year of 2 halves, positive signs in H1, declining in H2, the 6 fuel price decreases not helping at all on the results, but bode well for increased travel going forward Group debt levels lowest in 10 years, good cash generation, a healthy balance sheet Revenue has disappointed
Slide 34: Thank You
THANK YOU